Rajasthan, the state known for its cultures and traditions, now plans to become the next startup hub with its new Startup Policy 2015. The policy expected to be launched soon will see Rajasthan government setting up 55 crores from its own coffers and aims to bring investments of over 500 crores to set up 500 startups in the next 5 years.
Under the policy, the state also intends to set 50 incubators in the next five years. Principal Secretary, Industries at Government of Rajasthan and Managing Director for RIICO (Rajasthan Industrial development and Investment Corporation), Veenu Gupta said that under the policy, the state will offer 11 crore each year to promising startups and will provide an assistance of Rs 10 lakhs per startup in the form of a equity or a loan.
This new startup focussed policy would make Rajasthan the first north Indian state to come up with such policy. Karnataka, Gujarat, Andhra Pradesh and Kerala remain the only states so far to have such policies for startups.
The startups in Rajasthan will be screened with the help of the partner organizations which include Rajasthan Venture Capital Fund, IIM-A’s CIIE, Rajasthan Angel Investors Network (RAIN) and Chennai-based Impact investment firm Villgro.These organizations will also help in setting up the incubators for startups in the state.
At present, Car Dekho and Culture Alley remain one of the most popular venture funded startups in Rajasthan. Culture Alley recently raised $6.1 million (36 crores) from New York based Tiger Global Management and few angel investors. Besides this, the capital city also boasts of a tech park where firms such as Infosys and Genpact have their offices.
In the words of Nitesh Patni, the founder of Culture Alley –
A challenge for Rajasthan-based startups is visibility – which impacts fundraising and hiring. Initiatives like incubation could go a long way for VCs, talent, and potential customers to get to know of exciting startups here.